FEDERAL EMPLOYEE WAGE AND SALARY FREEZE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000700070012-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 9, 2016
• Document Release Date: August 9, 2000
• Sequence Number: 12
• Publication Date: August 26, 1971
• Content Type: BULL

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ADVANCE COPY
UNITED STATES CIVIL SERVICE COMMISSION
BULLETIN
BTN. NO. 531-52
Washington, D.C. 20415
JJ1^JG August 26, 1971
SUBJECT: Federal Employee Wage and Salary Freeze
Heads of Agencies and Independent Establishments:
This bulletin transmits for your information answers to some of the
questions that have been raised about how the pay and other benefits
of Federal employees are affected by Executive Order 11615, August 15,
1971, which freezes salaries, wages, prices, and rents for 90 days.
Bernard Rosen
Executive Director
INQUIRIES: Salary Questions: Code 101, Extension 25595 (63-25595)
Wage Questions: Code 101, Extension 25454 (63-25454)
Incentive Awards Questions: Code 101, Extension 25568 (63-25568)
Retirement Questions: Code 101, Extension 24684 (63-24684)
Personnel Action Processing Questions: Code 101, Extension
25623 (63-25623)
?DISTRIBUTION: FPM (Advance o t
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Setting Basic Pay
1. Q. Is the highest previous rate rule affected by the freeze?
No. The highest previous rate rule may be applied as usual.
For example, see questions 2 and 5.'
,Are promotions permissible . during. the. freeze period?
Yes. Promotions to positions of greater responsibilities in
higher grade or level-are permitted under the order, and pay
on promotion will be fixed'in..accordance with applicable law
and regulation, including an agency's. highest previous rate
regulations. In this connection, agencies should keep; in
mind the provisions of OMB Bulletin 72-4.
3. Q. How is pay to be set for new employees?
A. The initial setting of pay for new employees is not affected by
the freeze.
4. Q. Will superior qualification appointments above the minimum of
the grade be permitted during the. freeze?
A. Agencies may continue to apply to the Commission to make such
appointments, in accordance with existing, law and regulations.
5. Q. How is pay to be set for former Federal employees who are
reemployed after a break in service?
A.. .. Pay for reemployed former Federal employees should be set in
accordance with the usual procedures, including an agency's
highest previous rate regulations.,,.,,,,.
May pay be increased to correct an administrative error made
.in.processing.a personnel action?.,
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Within-Grade Increases
1_. 0. Are all within-grade increases frozen?
A. Yes. Within-grade increases and quality increases are frozen
during the 90-day period.
2. Q. Does the freeze orl within-grade increases apply to both wage
and General Schedule employees?
A. Yes. Regardless of the pay plan or pay system,. if there is a
schedule of within-grade rates through which an employee
could progress on the basis of longevity or merit, or combina-
tion of same, no within-grade increase may be effected on or
after August 15, 1971.
3. Q. May within-grade increases which would have been earned during
the 90-day period be paid retroactively at the end of the
wage-freeze period?
4. Q. What effect will the freeze on within-grade increases have on
the waiting period for subsequent increases?
A. No effect. For waiting period purposes, an employee will be
considered to have received his within-grade increase on the
date he would have received it had the wage freeze not been
in effect.
5. Q. While the freeze is in effect, is it still necessary for
acceptable level of competence determinations to be made for
General Schedule employees?
A. Yes. Acceptable level of competence determinations must contin-
ue to be made, and the normal rights of an employee to seek
reconsideration or reversal of a negative determination are not
affected by the freeze.
I,
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1? Q`? an` employee on or'after nu
us: 15 ,
g
ours
d
-
ut.r o under conaitions for which premium pay
(overti
'
i
h
me,
n
g
t; holiday, Sunday, hazardous duty, etc.)
is normally granted, may he receive the appropriate additional
A. Yes. The freeze does not affect the actual payment of previously
authorized rates to employees who are assigned, either now or
in the'future, to work for which those.premium pay rates have
'been''authorized.
?r-uy== -L' entitled to receive a differential based on
a percentage of his pay rate, should the percentage be based
on theactual pay rate he is receiving or the pay rate he would
be receiving were it not for the freeze?
A. The differential must be based on the actual pay rate he is
receiving.
Actions Under Coordinated Federal'Wa e System
1. Q. What effect does Executive Order 11615 have on application
of the 45-day law?
"'A?"` If 'the effecti
d
'
ve
ate of the
wage schedule falls within the
freeze period, the schedule will-not be issued; or if issued
prior to August 15, it will not be effected during the freeze.
2. Q. A wage schedule has an effective date of August 8, 1971. Should
it be effected by the employing activities?
A. Yes. The schedule will be effected since the effective date of
Apgust 8, 1971, falls prior to the freeze period.
3. Q. A schedule is effective August 15, 1971. Is it to be effected?
A. No. The schedule will not be effected since the effective date
of August 15, 1971, falls within the freeze period.
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:v
N-f
4.
Q.
What disposition will be made of surveys in progress?
A.
Surveys in progress will-be completed and all actions taken
in accordance-with existing instructions to the point of
issuing the new wage schedule. If the effective date of the
wage schedule falls prior to the freeze period, the schedule
will be effected. If the effective date falls within the
freeze period,.the schedule. will not be effected.
5. Q. Does Executive Order 11615 affect retroactive "Monroney"
schedules?
"Monroney" schedules with an effective date prior to the freeze
period will be issued and effected. A "Monroney" schedule
with an effective date during the freeze period will not be
effected.
6. Q.' Will special surveys be conducted under.t.he Monroney law for
retroactive application?
A. Yes. See'answer above.
7. Q. Will wage'schedules be retroactively applied when the wage
freeze is. lifted?
B.
Q.
If a wage'employee transfers in the same grade and step rate from
one wage area-to another local wage area with higher rates, can
he receive an increase in pay?
A.
Yes. He should
and step under
working in.
receive the proper wage rate for his grade
the wage schedule for whatever area he is
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Retirement-
"'How does the'. freeze affect an' employee''"s "high" three"year`s 'average .,
salary for, Civih Service'" Retirement `purposes? > '
Coanputatibn:of,an employees "high, three" years average-salary-over
a period of time which includes. rthe,f.reeze .period;will be_'based on
the basic pay the employee actually received, rather than on that
basic pay he would have been entitled to receive had the freeze
A. The amount of an employee's group life insurance coverage during the
period of time he freeze,.is in effec.twill be,.based ontheannual
rate of basic,. pay ,
the employee actually rece$yed, rather th
he an on the pay
wpuld.'have;been entitled to receive ,had.the #.ree~e,not.,been in effect.
Life+ :Insurance
How does the freeze affect:, the amount' bf an''empio'yee's life insurance
coverage under the Federal Employees Group Life Insurance Program?
Pay Set by Administrative Action
ueLermineu pay schedules be increased
r~, , W,;, Q~i =nYeL vT consultant c,be, ,1nareas e.d during the
freeze period?
A. No.
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Special Rates
1 Q. How will the freeze on pay-raises affect special salary rates that can be
approved by the ,Commission under-:the.-.authority of 5 U.S.C. 5303?.
A. During the period covered by the freeze, no existing special rate schedules
will. be increased and no new special rate schedules will be approved for
any occupation or geographic area.
2 Q. Can an employee receive a pay increase if, during the freeze, he moves
from an occupation covered by regular salary rates to an occupation covered
by special salary rates even though there is no change in grade?
A. Yes. This would be true also if an employee moves from a position covered
by special rates to a position covered by higher special rates. On job
changes, with or without a promotion, the employee will receive the rate
of pay that is authorized for his new position.
Cost-of-Living Allowances
If an "employee transfers 'during the freeze period to 'an 'area
for which a'cost-of -living allowance is authorized', can he
receive that allowance?
A. Yes, if he is otherwise eligible.
Incentive Awards
Q. Are incentive awards frozen?
A. Cash awards and within-grade step increases based on performance
or merit are frozen. Honorary awards are not affected by the
`freeze, nor are cash awards for employee suggestions or
inventions.
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